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Alyssa recently opened a small business selling hand-made necklaces.She's a marketing whiz,and her brand was immediately picked up by a few popular blogs.She worked feverishly to produce a big inventory to keep up with the sales.After the first six months,her sales evened out,so she reduced her inventory.Now she knows how much inventory to keep to match her sales and her budget.Which of the following processes from systems theory explains this sequence?
Retained Earnings
Retained earnings represent the portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.
Income Statement
A financial statement that shows a company's revenues, expenses, and profits or losses over a particular period.
Rent Expense
The cost incurred for leasing a property or equipment used in the operation of a business.
Fees Earned
Income generated from providing services, often used in professional practices like law firms, consulting firms, and architectural firms.
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